Attention landlords and tenants: Rent increases will be parallel to salary raises

The mandatory mediation method for landlord-tenant disputes, which has been in effect since September 1, 2023, is resolving many issues without them ever reaching the courts.

Matters resolved in the presence of a mediator are not limited to rent; disputes between employees and employers, as well as those concerning condominium ownership and neighbor relations, are also being settled through mediation.

Recently, Minister of Justice Yılmaz Tunç announced that out of 6 million 223 thousand 211 files for which negotiations were completed, 4 million 72 thousand 786 resulted in an agreement. Thus, the success rate in mediation has reached 65 percent. Minister Tunç stated that the success rate in rent disputes is 47 percent.

Explaining two examples of mediation between landlords and tenants to milliyet.com.tr, Dr. Umut Metin, spokesperson for the Turkey Mediators and Mediation Centers (TURAMEP), stated the following:

“The monthly rent for a 2+1 apartment located in Halkalı, Istanbul, was at the level of 7,000 TL in January 2024. Although the contract renewal date was in February, the landlord requested that the new monthly rent be 12,000 TL. After the rent was paid in this manner for 2 months, the landlord passed away. The rent was paid by the tenant to the deceased's spouse as 12,000 TL for 2 consecutive months.

After this period, one of the daughters of the deceased property owner called the tenant, stating that they had not been paid rent and that, as heirs, the rent should be paid to all heirs rather than to her mother. She also declared that she had set the rent at 20,000 TL per month instead of 12,000 TL. She further demanded payment for the unpaid rent. Consequently, a dispute arose regarding whether the rent paid had been paid to the correct person.

The tenant, however, stated that the increase was too high and that they did not accept it. They also argued that there was no outstanding rent debt. The heirs applied to a mediator before filing a rent determination lawsuit.

During the mediation talks, it was stated by the parties that 7 years had passed since the initial lease agreement. While the conditions for a rent determination lawsuit were acknowledged by the parties, figures regarding comparable properties in the vicinity were also declared. It was understood that comparable rents were in the range of 20,000 TL to 25,000 TL. The parties reached an agreement on a monthly rent of 15,000 TL instead of the comparable monthly rates of 20,000 TL/25,000 TL.

In the same mediation agreement, it was also proven that the tenant had no outstanding rent debt from previous periods, thereby preventing the tenant from facing claims of underpayment.

In the second mediation case, the residential area where the rented property was located was a modern complex with luxury amenities, including a pool and sports facilities. The monthly rent paid was 8,000 TL, while the market rents in the same complex were around 25,000-30,000 TL. The tenant had stated that they needed to reside in the same complex for another 2 years due to their professional work and the fact that their children were attending the school operating within the complex.

In the second mediation case, the rented residence was located in a modern residential complex featuring a luxury pool and sports facilities. The monthly rent paid was 8,000 TL, while the market rent for similar units in the same complex was around 25,000-30,000 TL. The tenant stated that they needed to continue living in the same complex for another 2 years due to their professional work and the fact that their children were enrolled in the school operating within the site.

Although the tenant wanted to stay in the residence for 2 more years, there was an eviction commitment they had previously signed. Enforcement proceedings based on the eviction commitment were initiated by the landlord's lawyer. To delay the eviction, the tenant challenged their signature on the eviction commitment. The landlord's lawyer applied for mediation to file a lawsuit for the cancellation of the objection and for eviction. A positive meeting process took place between the parties during the mediation process.

During this process, the rent increase for 1 year will be applied at the legal maximum limit, which is the rate of the last 12-month CPI. However, the tenant's annual salary increase will be implemented every March, in accordance with the contract with the institution where they are employed.

In the agreement reached in the presence of a mediator, the tenant, whose salary will be increased, will make an additional increase in March 2025 that is fully compatible with the raise in their salary, provided it is not less than 20 percent. Thus, it was agreed that even if the rent remains below comparable market rates, the tenant will take a step consistent with the improvement in their own financial situation.

However, the second legal increase will not be applied in November, which is the 2025 rental period; instead, a rent increase will be implemented in March 2026 in accordance with the legal rate limits. In this form, an agreement has been reached on a 3-stage rent payment arrangement. With the new rent amount, the tenant will continue to reside in the property until November 2026.

In addition to this, the tenant had previously raised a signature objection to the enforcement proceedings based on a commitment to vacate. To narrow the possibility of another signature objection, the tenant will this time provide the commitment to vacate from a notary, together with their spouse, for the last day of November 2026.

Thanks to the mediation agreement, both the transformation of a follow-up proceeding already reflected in the courthouse into a lawsuit was prevented, and an agreement was reached between the parties on a new rental price and increase schedule suitable for their own circumstances.

On the other hand, an eviction undertaking was drawn up at a notary public and delivered to the lessor. Thus, the planning of a potential eviction process has also been carried out in a more sound manner.

In this form, the tenant's professional activities and the advantage of proximity to their children's school have been preserved.”